The German Federal Cartel Office (FCO) has launched its investigation into the proposed takeover of cabelco Kabel BW by Liberty Global. The regulator initially has one month to examine the proposed merger.
By mid August the FCO will have to either clear…
The German Federal Cartel Office (FCO) has launched its investigation into the proposed takeover of cabelco Kabel BW by Liberty Global. The regulator initially has one month to examine the proposed merger.
By mid August the FCO will have to either clear the deal or open an in-depth-investigation, with the latter being widely expected. This would extend the investigation by another three months.
The transaction was initially notified with the European Commission in April this year, who referred the investigation to the national authority because of the impact of the deal on the German market. The FCO has taken a tough stance on cable operators in the past, prohibiting the merger of KDG, Ish, Iesy and Kabel BW in 2004. But observers believe there is a better chance for approval of Kabel BW/Liberty now. The experts argue that today’s market is more competitive than in 2004, mainly by increased competition from IPTV and digital terrestrial TV.
Liberty Global already operates in Germany under the Unitymedia brand.
